Colliers International welcomes tightly held two-storey retail investment asset to market
The renowned North Adelaide Burger Bar premises has come to market at a time when “High Street” retail assets are in limited local and national supply.
The two-storey Torrens-titled property at 51 O’Connell Street has been home to the popular eatery for more than 50 years and is now generating an enticing short-term net income of about $72,000 per annum.
Colliers International’s Oliver Totani and Tom Isaksson have been appointed to the auction campaign, saying it was a rare opportunity to join the group of select few who owned property in the valuable retail precinct.
Mr Totani said the value-add potential through redevelopment or refurbishment, subject to council approval, was immeasurable.
“O’Connell Street has been going from strength to strength in recent times, due to the uptake in new tenants, especially in the food and beverage space,” he said.
“The rejuvenation of the precinct has seen it establish itself as one of Adelaide’s pre-eminent shopping, restaurant, café and entertainment precincts.
“Diagonally adjacent the property on the north-eastern corner of O’Connell and Archer streets is
88 O’Connell Street, which continues to be the focus of much conjecture but is still arguably South Australia’s most iconic and valuable retail, hotel, residential and car park development sites.”
Mr Isaksson said the property’s location was a key selling point, about two kilometres north of the Adelaide CBD and close to the Adelaide Oval, North Adelaide Golf Club and Riverbank Precinct.
“North Adelaide is one of the city’s highest socio-economic suburbs and is now considered a premier retail, restaurant and entertainment destination, while also acting as the main thoroughfare between the CBD and the inner northern suburbs,” he said.
“The property’s high-profile position affords outstanding exposure to substantial amounts of both passing foot and vehicular traffic.”
Mr Totani said O’Connell Street was “not only one of the premier shopping precincts in South Australia, but also one of the most coveted”, with limited sales reflecting the long-term hold of investors along the retail strip.
“Properties in O’Connell Street are generally owned by private investors, including many from interstate, who recognise the low risk and historic capital growth in the area,” he said.
“Well located property right in the heart of O’Connell Street is therefore a rare occurrence and one that should be assessed quickly in the face of likely strong demand.”